Alarming Sensex Plunge: 2,000 Points Lost in 3 Days – 5 Shocking Factors Behind the Indian Stock Market’s Freefall
The Indian stock market faced pressure for the third consecutive session on Wednesday, December 18. Both the Sensex and Nifty 50 experienced intraday declines of 0.80%, with the Sensex closing 502 points or 0.62% lower at 80,182.20, and the Nifty 50 down by 137 points or 0.56% at 24,198.85. Similarly, the BSE Midcap and Smallcap indices dropped by 0.61% and 0.76%, respectively. The Sensex has plummeted 1,951 points in three days, reducing the BSE-listed firms’ market capitalization by nearly ₹6 lakh crore to ₹453 lakh crore.
Sectoral indices also saw losses, with Nifty Media and PSU Bank indices falling over 2%, while Nifty Pharma and IT indices rose slightly. The market downturn is attributed to caution ahead of the US Federal Reserve policy decision, the Indian rupee’s record low of 84.95 per dollar, foreign capital outflows, significant losses in banking stocks, and concerns over deteriorating macroeconomic conditions. The growing US dollar and unsatisfactory trade deficit figures further dampened sentiment. Analysts suggest that the Nifty’s closure below the 20-day SMA indicates short-term bearish trends, though a potential quick rally could occur if Nifty exceeds 24,250.
Original Source: https://www.livemint.com/market/stock-market-news/sensex-crashes-2-000-points-in-3-days-5-factors-why-indian-stock-market-is-falling-11734512739179.html
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Publish Date: 2024-12-18 16:18:00
